All Forum Posts by: Jeremy Martin

No problem abount multiple posts, I love the info! Thank you very much.

Part of me wants to just but the bullet and pay the tax, justifying that this is still more money than I’ve ever had in my life and could still be used effectively in my goals.

But I know it’s a lot of money to throw away, and I HATE throwing money away.

The tax is 15%, correct? So half of a $175k profit being 87.5k, then each of us would pay a tax of $13,125.... disgusting.

Thank you for you input!

I should clarify, my grandmother has not been living in this home so she would not pass the use test. She and her husband (my step grandpa) have their own home. They’ve been pretty successful in business and real estate, including building homes and commercial properties.

She bought this house and had one end converted into a mother in law. The plan was to deed this house to my aunt who would then rent out the main potion as a source of income. Sparing the details, that hasn’t really worked out. My brother ended up becoming that primary renter (he’s responsible and conscientious like me), and my aunt is no longer in this picture due to her circumstances.

If my grandma had sold the house and gifted us the money, my understanding is that, to avoid being taxed, she would have to gift it in increments of 14k per year, but could do four of these in one year, each grandparent to each of my wife and I, so 56k per year. Same for my brother.

I think she wanted to give it to us sooner than later. Frankly, her health has declined and she can’t afford to manage or stress over the property. She’s also mentioned this eliminates the cost of the property tax on her.

By "not enough money to worry about", do you mean, don't bother attempting REI? Or do you mean just pay the tax don't worry about it?

Also, are you saying my brother would get the tax free benefit but not me? (I was prepared for that possibility)

Hmm, so I understand the basics of cost basis (I’m not fully clueless, I’ve been reading up), but doesn’t she have to die to pass on the house through a will?

Her purchase was 235k I believe, and I think she put in around 20k to create the mother in law, so let’s say $255 total.

I understand we inherit that cost basis. If I understand correctly, when you sell, you have up to $250k tax free profit (per spouse) if you have lived there for 2 of the 5 years prior to sale.

The transfer just happened, but my brother and his wife have lived there for 5 years (renting from my grandma). If we assume her cost basis, do we not also get the protection on profit? (The house is in the name of all 4 of us, me, my brother, and our wives; I’m not sure what complication that adds).

Point is I thought we have some protection against taxation on the profit of a sale. Am I wrong?

Hello,

I was hoping you guys could provide me a few tips based on the unique situation I'm in. For the past couple years I've wanted to start building passive income, and I'm very interested in real estate. I just hit 30, I'm highly conscientious and learn quickly, and I want to beat the 9-5 life.

My wife and I both work full time, combined gross income is about 76k. We have 23K in savings. We have no children. I also have a twin brother; he and his wife also work full time, similar gross income, probably 4k in debt, also no kids.

My grandmother just transferred a house to us that is currently estimated at 375k on zillow and redfin. We live in the Fresno, CA area. The house is listed as a 3/2, but it technically could be a 5/3. There are 3 full bathrooms, and the other two "bedrooms" are on one end of the house, which was converted into a "mother in law" section. Basically, the mother in law is not represented in the "3/2" designation, so we're hoping there's some additional value hidden there.

We are unsure what is the best way to proceed with a REI strategy with starting with this home. My brother currently lives there, so expenses are stable for now, we're not losing anything. The house is in very good shape in a good area of town.

- We've considered selling for cash (maybe do some upgrades first)

- Sell in Spring/Summer of 2019, or before the next "crash"?

- Rent out this home? (probably between $1600 - $1800)

- Sell and buy a multi family?

I've read up on the 2% rule and this seem to be an utter fantasy in Fresno CA, which is pretty depressing.

We feel that we've got a very fortunate head start that many people could only dream of, but we're not sure how to take advantage of it. Any tips would be greatly appreciated!

Thanks

Hello,

My name is Jeremy. I'm have strong creative drive, and for last couple years I have begun to feel that I'm too smart to just be working full time. I know I can make money in a much smarter way, working less hours, but I often suffer from analysis paralysis.

I've discovered the idea of being a landlord and living on rental income. I've never owned a home. My landlord owns at least 15 rental properties, and I just know, if he can do it, then so can I. Over the last few years I've proven to myself through various projects and hobbies that I can learn any skill to accomplish my goal. I just need some direction to get started. I would appreciate any advice you could offer.

I also feel I'm in a very good position to get started:

- I'm 28; married 4 years

- No kids

- No debt whatsoever

- I work full time, $22/hr or gross about 45k/yr.

- Wife does not work, but she may have a part time job soon, about 13k/yr gross

- Currently $18,000 savings and ability to save more

- 1.5 yrs credit history, FICO score is 747

- Central valley CA area

Even better, I have a family member (Grandmother) who has been successful in real estate and has been giving me what I would consider "early inheritence" for the past couple years, hence my savings. I'm in VERY early talks with her about going into rentals, but she has expressed a willingness to invest in me, possibly even buying a duplex outright; again still very early.

EVEN better, I also have a twin brother who is a lot like me. He is very interested in working together since I started talking to him about the idea. He and his wife are double-income-no-kids, though they do have around 15k debt I believe. But they do have postive cash flow, more than me. He has good credit, I think around 800 with about 10 years history.

I don't know anything about buy a house, but I'm learning. I'm looking for recommendations or "If I were in your shoes" type suggestions. My/our goal is to eventually replace our incomes with rental income while working only a view hours a week. I know this will take some time, but I'd like to make some good progress toward this goal within 3-5 years. My goal is to stop working full time and gain back my free time for other pursuits, personal and maybe even business.

I'm open to single-family units. Multi-family seems more appealing to me. My Grandmother recommends a flipper that we live in for a year while fixing up.

Thanks again for any advice or suggestions!!!